SBMA to require permit to operate from locators

The Subic Bay Metropolitan Authority (SBMA) will begin strictly enforcing on July 1 the requirement for all business locators in this free port to secure a permit to operate (PTO).

According to Stefani Saño, SBMA senior deputy administrator for business and investment development, the agency will require all locators to comply with this regulation in view of recent findings that some locators have begun operation when they have yet to comply with all the requirements.

“If you don’t have a permit to operate, you have no business operating in the Subic Bay Freeport. The rule is, you need to comply first,” Saño stressed.

“This new system is not only beneficial to the government; it is also for the protection and for the interest of private businesses here,” he added.

Saño explained that in the existing system, the Certificate of Registration and Tax Exemption (CRTE) given to new locators before they open their business is also being considered as PTO. However, as the CRTE does not spell out other requirements, like an environmental compliance certificate, the system allowed some businesses to go around these requirements.

“The new board of directors saw this flaw, so we would have to change the system and stress compliance first before operation,” he added.

Saño said the SBMA had conducted a public forum with the business community on May 31 in order to enlighten Subic Freeport locators about the new permitting system.

He added that the new business permit will be implemented by the SBMA in addition to the current regulatory requirements already in existence.

“If the businesses are compliant, the system is sustainable because there is order. This is the principle behind this,” Saño also said. (FMD/MPD-SBMA)

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IN SUBIC, BAGUIO, CLARK; P5B power subsidy for mega projects

The Department of Trade and Industry (DTI) plans to continue a power subsidy plan for mega projects or those worth over $1 billion in Subic, Baguio and Clark.

Trade Undersecretary Cristino Panlilio said that P5 billion is being budgeted to replenish an old fund-industry competitive fund- started during the term of President Gloria Arroyo.

The subsidy can last for seven years. Panlilio said the electric power support scheme is now awaiting approval of Malacanang after it has gotten the endorsement of the economic cluster for appropriation in the budget.

He declined to identify the companies that would benefit from the plan nor the power rates they would be enjoying but previous reports had tagged Texas Instruments in Clark and Baguio, Hanjin Heavy Industries Philippines in Subic, Samsung through unit Phoenix Semiconductors in Clark, Intel Corp. and Mindanao Electronics Inc. as the initial beneficiaries of the reduced power scheme.

Despite this incentive, Intel chose to shift operations to Vietnam and closed its Cavite plant.

The subsidized power rate was P2.15 per kwh, which is about half the current cost to ordinary consumers and includes generation, transmission and distribution charges.

Generation charge was 20 to 30 percent cheaper.

Panlilio clarified that the new scheme being worked out is for just projects worth over a billion dollars and is separate from the one earlier forged by the Philippine Economic Zone Authority (PEZA) for reduced power rates for about 279 ecozone locators.

“It would be an adequate support for them to be competitive,” said Panlilio of the electric power support scheme.

The ICF was part of a commitment granted by the Arroyo government to the mega investors in Clark, Subic and Baguio ecozones. The support was contained in Executive Orders 701, 856 and 666 and expired in March 2011.

The scheme reportedly cost government P500 million annually because the locators were few and operations were small..

Korean firm Hanjin invested $2 billion for shipbuilding in Subic; Texas Instruments also invested $2 billion for its expansion project; Phoenix Semiconductor invested $500 million in Clark.

The ICF was used to support and incentivize qualified power intensive industries which contribute significantly to the economy.

The ICF was used to recover any financial impact that PSALM had to incur for the subsidy. (Irma Isip, Malaya)

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'VFA should govern use of former bases by US troops'

MANILA - American troops, warships and planes will use the former US military facilities in Subic and Clark temporarily on rotation basis and in accordance with the Visiting Forces Agreement (VFA), the military said yesterday.

Armed Forces of the Philippines (AFP) spokesman Col. Arnulfo Burgos Jr. said the recent docking of nuclear-powered attack submarine USS North Carolina in Subic Bay is an example of this military-to-military arrangement.

“As long as they have coordinated and got clearance from the government and they comply with the VFA, we see no problem with that,” he said.

US troop presence on a temporary basis is expected to increase in Subic and in other areas in the country following US Defense Secretary Leon Panetta’s statement that they are increasing their military presence in the Asia-Pacific region.

Panetta declared that 60 percent of US warships would be redeployed in the region, a new US military strategy seen as an equalizer to the increasing Chinese naval might in the South China Sea.

Speaking to reporters after meeting Gen. Martin Dempsey, chairman of the US Joint Chiefs of Staff, Defense Undersecretary Honorio Azcueta said the US warships and planes can use the former US naval base and its airfield on a temporary basis while in the country, provided that these visits have prior clearance from the government and are in conformity with the VFA.

“They can come here provided they have prior coordination with the government,” he said. Azcueta said US troops, warships and fighter planes would be allowed access to their former naval base in Subic.

“That’s what we want... increase in exercises and interoperability,” he said.

However, Malacañang said US troops can only use Clark and Subic during joint military exercises.

Speaking to reporters, presidential spokesman Edwin Lacierda said US warships will only be allowed to use naval and air facilities in Subic and in Clark during drills. American ships and submarines will be allowed to make port calls for refueling and supply replenishment, he added.

Due to the US shift to expand its presence in the Asia-Pacific, more requests for port calls of US warships and aircrafts are expected, Lacierda said. (Jaime Laude with Delon Porcalla, The Philippine Star)

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Central Luzon holds search, rescue drill

MARIVELES — The Office of Civil Defense has sounded the alarm over 20 to 30 townspeople missing amid storm signal No. 2 over widespread flooding caused by overflowing rivers.

This is a drill in a mission set by OCD director Josefina Timoteo at the incident command post during the 4th Central Luzon annual Water Search and Rescue Simulation Exercises, dispatching 20 go-teams from different localities.

Responding to the call were teams from Provincial Government of Bataan; city government of Balanga, Bataan; Provincial Government of Pampanga; Subic Bay Metropolitan Authority; Provincial Government of Tarlac; Provincial Government of Bulacan; local governments of Marilao, Calumpit, Sta. Maria, Pulilan, and San Jose Del Monte City of Bulacan; Provincial Government of Nueva Ecija; and city governments of Palayan and Cabanatuan City of Nueva Ecija.

“We want to institutionalize ICP so that every local disaster management team will know how to handle any emergency,” she said.

Rescuers equipped with rubber boats, life vests, and oxygen tanks flocked to municipal waters under the watch of Mayor Jesse Concepcion who hosted the exercises.

“People will have more confidence to the rescuers if they know they are well-trained,” he said. “The camaraderie among rescue teams in the region was also reinforced in the holding of WASAR”.

The Municipal Disaster Risk Reduction and Management Council activated the Incident Command Post which coordinated the operations.

Administrator Luis Gonzales said Mariveles paramedics in ambulances participated in the drill. (Butch Gunio, Manila Standard)

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Vale, SBMA launch Subic Bay iron ore transshipment operations

Brazil’s Vale Shipping Holdings Pte. Ltd. (VSH), along with the Subic Bay Metropolitan Authority (SBMA), formally launched a partnership for the transshipment of iron ore from this free port.

In a ceremony held at the Lighthouse Marina Resort here on June 1, VSH executives led by Jose Carlos Martins, executive officer for ferrous minerals operations, and officials of the SBMA led by Chairman and Administrator Roberto Garcia, announced the start of Vale’s transshipment business here.

VSH is an affiliate of Vale SA, the world’s largest producer of iron ore, which also controls the largest share of the seaborne market for iron ore.

The company will carry out iron ore transshipment operations from its Valemax mother vessel to be anchored in Subic Bay, and then supply ore to smaller daughter vessels or feeders, which are either Panamax or Capesize types.

The project is expected to boost Subic’s port revenues by up to P70 million in the first year of operations alone.

In his message during the project launch, Martins thanked the SBMA for its warm reception of the project and expressed hope that the partnership between his company and the SBMA would continue to grow and benefit both the Philippines and Brazil.

“The Philippines is growing now at almost the same pace with China, and the Philippines is emerging in the world economy,” Martins noted. “With this opportunity, now is our time — now is the time for countries like Brazil and the Philippines.”

Garcia, meanwhile, said that the Vale project will help thrust the Philippines forward in the maritime industry and stressed its importance to the SBMA.

“In our strategic plan, we were very dead-set in continuing to promote the maritime business, and the Vale project is an important pillar of our strategy to maximize the use of Subic Bay,” he said.

“We have a very good future here,” Garcia added, pointing out that the Philippines is in a current state of rapid development, having achieved a 6.4 per cent GDP growth rate this first quarter compared to 4 per cent last year. “And what is outstanding is the fact that it is the second highest growth rate in the region, second only to China,” he added.

For his part, SBMA director and treasurer Joven Reyes said that the agency is much honored that VSH had chosen Subic Bay as its major transshipment port.

“We hope even more that your business continues to move from success to success and that this partnership, which we are officially launching today, would lead to better and greater developments for Vale, Subic Bay, and of course our country down the road,” Reyes said.

The Vale project began in late 2010 when SBMA and Vale proposed a solution that matched Vale’s transshipment operations model with SBMA’s logistics business model.

Stefani Saño, SBMA senior deputy administrator for business and investment development, said that Vale needed to optimize its large-scale iron ore distribution and delivery system and the SBMA offered the bay as a suitable offshore location.

“This logistics model would allow Vale’s huge vessels to tranship the commodity with maximum efficiency in terms of time and cost, given the scale of operations required,” Saño added.

Saño also said that apart from Vale, the SBMA is also trying to attract more logistics companies to invest in the Freeport. He said that at least two logistics companies engaged in different line of commodities for offshore-based distribution operations have expressed interest in locating at Subic Bay. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia welcomes Jose Carlos Martins, executive officer for ferrous minerals operations of the Vale Shipping Holdings Pte. Ltd. ( VSH), during the June 1 ceremonial launch of the Vale iron ore transshipment operations in Subic Bay. Looking on, at left, is SBMA chief operating officer Joven Reyes.

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US troops can use Clark, Subic bases

MANILA - American troops, warships and aircraft can once again use their former naval and air facilities in Subic, Zambales and in Clark Field in Pampanga as long as they have prior clearance from the Philippine government, a senior defense official said.

“They can come here provided they have prior coordination from the government,” Defense Undersecretary for defense affairs Honorio Azcueta told reporters after his meeting with Gen. Martin Dempsey, chairman of the US Joint Chiefs of Staff, on Monday.

oming straight from the just-concluded three-day Shangri-La Dialogue in Singapore, Dempsey was in the country the other day for a follow-up meeting with senior defense and military officials.

Azcueta pointed out that a shift of US security focus toward the Asia-Pacific region is expected to increase with more military engagements between the two long-time allies.

Earlier, US Defense Secretary Leon Panetta announced that the US is increasing the deployment of its naval presence in the region, without necessarily establishing permanent military bases in any country in the region.

Asked if US troops as well as their warships and fighter planes would be allowed access to their former naval base in Subic, Azcueta said yes.

“That’s what we want... increase in exercises and interoperability,” Azcueta said.

Aside from offering a safe haven for ships due to its secured location from cyclones, the former US naval base in Subic has an airfield that can accommodate civilian and military planes.

During the Vietnam war in the 1970s, Subic Naval Base, especially its airfield, was used by the US military as staging point of all its major air operations against the Vietcong.

However, in 1992 Subic Naval Base and the Clark Air Base in Pampanga, the two biggest US military bases outside mainland America, were shut down after the Philippine Senate rejected an extension of their presence in the country.

China wary of US AsiaPac plan

Meanwhile, China’s top newspapers expressed concern over the US plan, saying that such move might widen the rift between the two countries.

Although Panetta gave assurance that the plan was not aimed at containing China, whose fast-modernizing navy has kindled worries among its neighbors, the People’s Daily did not buy that.

“Opinion across the Asia-Pacific generally does not believe that the United States’ strategy of returning to the Asia-Pacific is not aimed at China; it’s there plain for all to see,” said a commentary in the paper, which reflects the current thinking in Beijing.

“The United States verbally denies it is containing China’s rise, but while establishing a new security array across the Asia-Pacific, it has invariably made China its target,” it said.

“This strategy is driven with contradictions and undoubtedly will magnify the complexities of Asia-Pacific security arrangements, and could even create schisms.”

The People’s Daily commentary was blunter than Chinese Foreign Ministry spokesman Liu Weimin, who responded to Panetta’s announcement by saying China hopes the United States will respect its regional interests, and by calling the Pentagon’s steps “out of keeping with the times.”

Beijing appears keen to avoid outright confrontation with the US, but the comments in state newspapers reflected persistent worries that Washington is bent on frustrating its emergence as a major power.

“After this new (US) military deployment and adjustment is completed, the intensity of US meddling in Asia-Pacific affairs will surely increase,” the Liberation Army Daily quoted a People’s Liberation Army researcher as saying.

“This trend will increase people’s fears about the United States using its military dominance to interfere in the sovereignty of the region’s countries,” said the researcher, Han Xudong, a professor at China’s National Defense University.

China is focused on ensuring stable conditions for a Communist Party leadership transition later this year that will see the appointment of a new president to succeed Hu Jintao.

Still, Beijing and Washington have repeatedly been in dispute over US arms sales to Taiwan, which China sees as an illegitimate breakaway from its control; and the South China Sea, where China confronts a mosaic of disputes over islands and seas also claimed by Southeast Asian nations.

The US has backed a multilateral approach to solving those territorial disputes, which Beijing has rejected as meddling. (Jaime Laude, The Philippine Star)

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Tourists' Food Haven In Subic

Aside from shipbuilding magnate Hanjin Heavy Industries, and Construction (HHIC), other factories, auction companies and catering services are now eyeing this premier Freeport for its tourism potential.

With the construction of Ayala Land's Harbor Point mall, more and more restaurants and bars are opening just within the Subic Bay Freeport's gates.

Subic Bay Metropolitan Authority (SBMA) officials said the Subic Free port has been a favorite destination for local and foreign tourists.

These tourists want to explore this Freeport while having a great time and seek good places to dine.

This is where food stores and restaurants come in, officials said.


They said that tourists who come into this premier Freeport will need a fine dining experience and places to hang out.

Restaurants such as Gerry's Grill, Lighthouse Marina's, Coco Lime and Meatplus are just a few of the best restaurants that tourists here frequent when they stay at Subic Bay Freeport.( Jonas Reyes, Manila Bulletin)

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Meralco says Subic plant running by ’15

The Manila Electric Co. (Meralco), the country’s largest power distributor, said it is on track to finish its 600-megawatt coal-fired power plant in the Subic Bay freeport zone by 2015 despite various challenges.

“The Subic project is moving, we recently filed for our Board of Investment (BOI) registration with the proper endorsement from the Department of Energy,” said Oscar Reyes, president and chief executive officer of Meralco.

Reyes said the biggest challenge, the transmission line, has been tabled for discussion with the National Grid of the Philippines (NGCP).

He added that certain matters raised by the Subic Bay Metropolitan Authority (SBMA) with the firm are being addressed as well.

“We are in constant communication with NGCP, SBMA, with the other stakeholders in the area, and the DOE,” Reyes said.

“We committed to bring this capacity on stream by 2015, and I think that remains to be our target because the Luzon grid clearly needs it,” he added.

The project is being undertaken by Redondo Peninsula Energy Inc. (RP Energy), a joint-venture company among Meralco, Aboitiz Power Corp., and Taiwan Cogeneration International Corp. (TCIC).(Richmond S. Mercurio, Malaya)

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Puregold to set up Subic unit

LISTED Puregold Price Club Inc., the country’s second-biggest supermarket chain, is setting up a subsidiary to handle stores in the Subic Bay Economic Zone in Olongapo City.

In a filing to the Philippine Stock Exchange on Wednesday, Puregold said its board approved the incorporation of PPCI Subic Inc., which is wholly owned subsidiary.

The company has been widening its footprint outside Metro Manila, where the bulk of its stores are situated.

Earlier this week, Puregold acquired the 19-store Parco supermarket chain with 12 Metro Manila-based stores and seven in nearby provinces.

Following the acquisition of Parco and sister-company S&R Price Club Inc., Puregold +will have a total network of 131 stores, with more than half situated in the country’s capital.

The retailer reported earlier that net income in the three months to June rose 24 percent to P469 million as sales rose 30 percent to P10.7 billion. Puregold shares declined 0.44 percent to P22.60 each on Wednesday, giving it a market value of P45.2 billion.(Miguel R. Camus, Business Mirror)

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Redeveloped Subic airport to raise P150B investments

Redeveloping the Subic Airport site into a family-oriented tourism facility will raise investments of over P150 billion, according to the Subic Bay Metropolitan Authority.

Moe Villamor, chief of staff of SBMA administrator Robert Garcia, in a presentation before government agencies about the Philippine Investment Promotion Plan, said the SBMA is pushing for the redevelopment of the 200-hectare property which had been largely unused after the pullout of Federal Express in February 2009.

SBMA wants the airport redeveloped since Clark, just 30 minutes away, is now being promoted as the country’s premier airport.

Tourism is the emerging industry in Subic, according to Villamor.

Villamor said the project is still under consideration of the Office of the President and the National Economic and Development Authority (NEDA).

“We have some indicative plans on what we believe should be the layout. We have our own environmental impact study,” he said.

He added: “We are willing to coordinate with the appropriate agencies. But if the President says there is some other use for it, or if he says to maintain the facility, we are going to back off.”

Villamor said following the withdrawal of the FedEx Asia Pacific hub – which moved to Guangzhou in China – the Subic airport is hardly being used, mostly serving general aviation and flight training, and is not making as much money.

There are about 22 locators at the airport.

FedEx operated its AsiaOne hub in Subic for 13 years.

SBMA had been looking for a more viable use for the airport since 2010 as it had to shoulder up to P250 million annually to have the airport running, of which P150 million went to debt service and another P100 million to maintenance costs.

To break even, the SBMA had said in the past, the airport should be able to mount 12 to 15 flights a day.

The airport served as a secondary airport and the main diversion airport of the Ninoy Aquino International Airport. This airport used to be the Naval Air Station Cubi Point of the United States Navy. .(Malaya Business Insight)

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Brazil’s Vale invests to get around Chinese megaship ban

Brazilian diversified mining major Vale, the world’s number two mining group in terms of market capitalisation, has announced that it is to establish a second floating iron-ore transfer station, in Subic Bay, in the Philippines.

This station will transfer iron-ore from the miner’s giant Valemax bulk carriers to smaller Capesize and Panamax ore carriers, which will then convey the ore to ports in China.

The first of these floating transfer stations, also in Subic Bay, started operations in February and cost the Brazilian group $52-million.

The Valemax ships are the largest bulk carriers in the world. Each of them has a length of 362 m, a beam of 65 m and is able to carry 400 000 t of iron-ore. Each Valemax can carry three times the cargo of a Capesize bulk carrier – Capesize ships currently carry 80% of the world’s seaborne iron-ore.

Vale has ordered 35 Valemax ships, of which eight have been delivered. But Chinese shipowners, alarmed by the competitive threat they pose, have persuaded the Chinese authorities to ban them from that country’s ports.

The floating transfer stations are Vale’s response. They allow the company to deliver its iron-ore some 85% of the distance from Brazil to China on board the more cost-efficient Valemax ships, and then conclude the last 15% on the smaller vessels.

In addition, Vale has an operational land-based distribution centre in Oman and is building a second such centre in Malaysia. Together, these floating transfer stations and the distribution centres will be able to absorb the total capacity of all 35 Valemaxes, which comes to 60-million tons of iron-ore a year.

However, Chinese steelmakers, eager to benefit from the cost reductions the Valemax ships could bring, are reported to be pressurising the Chinese government to lift the ban on the vessels. One of the first Valemax ships successfully docked at Dalian last year, before the ban was imposed.

Moreover, nearly half of the Valemax ships – 16 out of 35 – are being built in China by Rongsheng Heavy Industries, an order worth $2.1-billion. (The rest are being built in South Korea. One of the South Korean ships recently developed cracks in its hull on its maiden voyage, but Rongsheng states its ships are very safe.) Not all the Valemax ships will be owned by Vale, but those that are not owned by the group will be on long-term lease to it.

Should the Chinese government change its policy and allow the Valemax ships into its ports, this will not render the floating transfer stations superfluous. As each transfer station is actually a modified bulk carrier, they will simply be moved to new locations to serve other markets in Asia and South-East Asia.
The development and deployment of the Valemax ships has had a severe impact on the value of Capesize vessels. The website VesselsValue.com last month reported that new Capesize ships that had been worth $69.9-million in April 2010 were now worth $39.9-billion. The website also reported that, as a result of the Chinese ban, the value of Valemax ships had fallen by 36%. But, for Vale, it is the value of the iron-ore and the utility of the ships that are important; the book value of the vessels is a secondary issue.

Meanwhile, closer to home, the Brazilian miner’s Mozambican operation has ordered 33 200 railway sleepers from agriculture and forestry company Montara Continental, which operates in Mozambique and Tanzania and is 75%-owned by the British Obtala Resources group. The railway sleepers will be delivered over the next seven months and will be used in the upgrading of Vale-owned railways in Mozambique and Malawi and in the construction of a new line in Malawi. (Keith Campbell, Creamer Media's Mining Weekly)

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SBMA, LGUs take part in open space technology workshop

Taking up the challenge of President Aquino in forging a social contract with the local community, the Subic Bay Metropolitan Authority (SBMA) met with neighboring local government units (LGUs) in an Open Space Technology Workshop held on May 19-20 at the Subic Bay International Hotel.

The workshop was an open-type of seminar wherein the participants themselves determined the agenda that would be up for discussion the following day. It was facilitated by Greg Forbes, a consultant at the Office of the President-Adviser on Peace Process.

According to SBMA director Bienvenido Benitez, the workshop aims for transformational leadership, institutional reform, economic stability and inclusive growth in the province of Zambales and Bataan, the municipalities of Subic, Hermosa and Morong, and Olongapo City. These are the communities that will be greatly affected by the current developments in the Freeport.

“Hopefully we will find a common denominator amongst us, and we will pursue that common denominator. It could be about environmental issues, industrial issues, eco-tourism, housing, or education. Maraming mga field ang maaring lumabas,” Benitez said.

Benitez also mentioned that the SBMA board of directors had recently created a community program aptly named Project Unity, which endeavors to create synergy and development and promote investment projects that have larger multiplier effects on local economies.

“Its underlying goal is promoting inclusive growth and progress that will ultimately lead to poverty reduction and translate into a stronger platform for sustainable sub-regional development,” Benitez further noted, adding that the committee has already met with the LGUs to discuss issues concerning their respective communities.

For his part, SBMA chairman and administrator Roberto Garcia said that the Open Space Technology Workshop is an opportunity to create rapport with the communities surrounding the Subic Freeport.

“’Yung SBMA at ‘yung mga LGUs, hindi naman tayo magkaiba ng layunin,” Garcia pointed out. “Dapat sama-sama tayo dito. Kaya ‘yung kaunlarang mangyayari dito sa loob ng SBMA, ang gusto namin kasama kayo.”

Garcia then stressed the importance of letting the LGUs be aware of developments inside the Freeport.
“Importanteng malaman ninyo ang direksyon ng SBMA para sa ganun, kayo naman sa inyong pag-paplano tignan ninyo kung saan tayo pupuwedeng magkapit-bisig at gumawa ng hakbang,” he said.

Garcia said that he had already talked with some of the LGUs regarding projects that will benefit both the Freeport and the local communities. (FMD/MPD-SBMA)

 PHOTO:
SBMA chairman and administrator Roberto Garcia asks for support from neighboring local government units during the Open Space Technology Workshop at the Subic Bay Freeport.

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Garcia bares Subic tourism masterplan

The Subic Bay Metropolitan Authority (SBMA) is aiming to model the Subic Freeport after Singapore’s Sentosa Island in order to make it a truly viable world-class tourist destination.

SBMA chairman and administrator Roberto Garcia said during the Third Planning and Development Conference on Rural Tourism held here recently that the SBMA is conducting feasibility studies on the conversion of the Subic Bay International Airport into an integrated family resort similar to Sentosa.

“This is the centerpiece of our tourism program,” he said, pointing out that the conversion could bring in millions of foreign tourists to Subic.

He pointed out that Sentosa Island alone is responsible for bringing in 20 million visitors to Singapore and expressed hope that building a Sentosa-like theme park here will generate the same number of tourists for Subic.

“Remember that the target of the Aquino administration is to draw 10 million tourists by 2016. However, if we can build a world-class iconic tourist destination just imagine how many million tourists it would bring in,” he said.

Garcia also revealed that the SBMA will enhance its eco-tourism program and capitalize on existing nature-themed parks here like the Ocean Adventure Marine Park, Treetop Adventure, and Zoobic Safari.
“These three theme parks are responsible for bringing over 1.2 million tourists last year,” he said.

He added that Subic has other tourist attractions that let tourists enjoy horseback riding, trekking, and camping.

Apart from local tourists, Garcia said that Subic’s eco-based tourism is attracting more foreign visitors, as evidenced by the recent visit of a UK-based cruise ship, whose passengers were awed by Subic’s biodiversity and the culture of its indigenous Ayta tribe.

He also said that Subic is now well-prepared to host various international sporting events since the Freeport has the facilities and the manpower needed in staging events like the Century Tuna 5i50 Triathlon on June 24 and the recent Subic International Triathlon held on May 5-6. “In fact, many triathletes actually live here in Subic because they love to train here in the natural environment that we have,” he added.

Garcia also noted that because of its well-protected bay, Subic is able to host different water sport events so that it is now being regarded as the sailing capital of the Philippines, after serving as venue for events such as the Commodore’s Cup, which is part of the Asian sailing circuit competition.

In his message, Garcia also invited the delegates to see what Subic has to offer and expressed support to the Subic-based International School for Sustainable Tourism (ISST), which organized the conference.

“SBMA always stands ready to constantly promote eco-tourism. That’s why we are fully supporting the international school headed by Dr. Mina Gabor to see in what way we can further promote Subic as an eco-tourism center, considering the unique environment that Subic has compared to many other places in the Philippines,” he said.

Noting the international delegates who participated in the conference, Garcia then expressed hope that they would be able to share with the SBMA their experiences in the promotion and management of biodiversity and eco-tourism areas. (FMD/MPD'SBMA)

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Hanjin Plans $700-M New Investments

MANILA - Hanjin, world’s leading ship manufacturer, is expanding its existing shipyard facility in Subic Freeport cementing the Philippines rank as the world’s fourth largest shipbuilder and construct a 200-megawatt power plant for estimated new investments of up to $700 million.

Trade and Industry Undersecretary for International Trade and Investment Promotion Cristino L. Panlilio revealed the Korean firm’s additional investment forays in the country after attending the recent investment promotion conference in Seoul organized by the ASEA-Korean Center where he spoke on the country’s favorable macroeconomic factors.

According to Panlilio, Hanjin through its local unit Hanjin Heavy Industries & Construction – Philippines, Inc. (HHIC-Phil, Inc.) would undertake the construction of its third slipway drydock at a cost of $300 million and plans to put up a 200 megawatt power plant that may cost between $200 million to $400 million.

Of the 200-mw power, Hanjin is expected to allocate between 50 to 60 MW for its own requirement and the rest to be supplied to the national grid.

For its shipyard facility, Panlilio said the construction of the third drydock would enable the facility to further expand its capacity to accept more shiprepair jobs. At present, HHIC-Phil is concentrating on shiprepairs and maintenance jobs because of a global slowdown in orders for new ships.

Panlilio said that Hanjin, which occupies 600-hectare lot in Subic Freeport, is working on a lease contract with Subic Bay Metropolitan Authority for an additional 100 hectares in the Redondo Bay for the new drydock.

The expansion of its Subic facility followed after Hanjin’s decision to abandon its expansion plan in Phividec in Misamis Oriental as it encountered problems with the local government units. In fact, it reservation for a 400-hectare property inside the industrial estate had already expired.

Since its first vessel delivery in 2008, Hanjin has already accumulated worth P125 billion in annual export sales as of the end of 2011.

Jin Kyu Ahn, president of the Korean shipbuilder giant, said that the recent vessel deliveries by Hanjin highlighted the competitiveness of HHIC-Phil’s Subic shipyard which produced the state-of-the-art commercial vessels.

Its newly delivered vessels are: M/T Brightway, a DWT 160,000 Crude Oil Tanker ordered by a Liberian company Modmal Shipping Limited and M/V FMG Matilda, a DWT 205,000 Bulk Carrier owned by Bocimar Hong Kong Ltd. based in Belgium. Both ship owners are engaged in international shipping and maritime solutions.

At present Hanjin employs 20,000 people at its Subic facility and plans to hire more this year.

Ahn said that, once targets for ship orders are reached this year, Hanjin could add over ten thousand workers which “would clearly benefit the Philippine economy, and bring opportunities to Filipino entrepreneurs and skilled workers, and much needed revenue to the Philippine government.”(Bernie Cahiles-Magkilat, Manila Bulletin)

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US submarine docks at Subic Bay

A United States attack submarine, the USS North Carolina, docked at Subic Bay on Sunday, the US Pacific Command (Pacom) said in a report.

According to Pacom , the Virginia class fast attack submarine’s Philippine visit was part of the vessel’s Western Pacific deployment.

In a text message on Tuesday, Foreign Affairs spokesperson Asec. Raul Hernandez confirmed the sub’s Philippine presence. “USS North Carolina… [is] in Subic Bay, on routine ship replenishment.”

Hernandez noted the submarine will be in the Philippines until May 19.

“North Carolina is one of the stealthiest, most technologically advanced submarines in the world,” Pacom claimed.

With a crew of 133, the submarine measures more than 350 feet long and weighs more that 7,800 tons when submerged.

“She brings to the region the capability to conduct the full spectrum of potential submarine missions including anti-submarine warfare, anti-surface ship warfare, strike, naval special warfare involving special operations forces, intelligence, surveillance, and reconnaissance, and mine warfare,” Pacom noted.

Master chief Jon Consford said the visit constitutes “rest and relaxation.”

“Everyone is looking forward to some good liberty, rest and relaxation during our port visit here in Subic Bay… The crew has worked hard and developed tremendously as a team over the last five and a half months,” he said in the same Pacom report.

A regular visit

Meanwhile, the country’s defense agency seemed clueless about the USS North Carolina.

“Wala pang official report. I have no knowledge of it,” Department of National Defense spokesperson Peter Paul Ruben Galvez told GMA News Online over the phone.

If a submarine visited in the country, it should be perceived as regular, he said.

“I have no information kung ano ‘yung nature ng visit kung meron man. Pero regarding that, may regular visits naman talaga,” said Galvez.

US presence escalates tension–CPP

Amid brewing tensions between Beijing and Manila over Panatag Shoal, the Communist Party of the Philippines (CPP) said in a statement on Sunday that US military presence escalates the tension between the two Asian countries.

“It is US military buildup… in the Asia-Pacific that is pushing China to further aggressiveness, resulting in worsening territorial conflicts and stoking diplomatic tensions between China and the Philippines,” the statement read.

Though the group backed the assertion of Philippine sovereignty over Panatag Shoal, it noted that the country should not lean on the US for military aid.

"In the past, the conflicts in the South China Sea have never been a source of great tension between the Philippines and China,” they said.

“Without the presence and interference of the US, claimant countries, including China, have been able to work together with each other with the aim of resolving the conflicts through diplomacy and negotiations,” CPP claimed.

Amid the dispute, the US and the Philippines issued a joint statement on April 30 reinstating the alliance “undergirding regional peace, security, and prosperity. (VS/KG, Rouchelle R. Dinglasan, GMA News)

PHOTO:
File photo of the the US Navy's USS North Carolina (SSN777) attack submarine.

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Hanjin to employ more workers

Helping boost the Philippine economy even through a slump in the world market, Korean shipbuilding industry leader Hanjin Heavy Industries and Construction-Philippines Inc. is set to aim higher and employ thousands of additional workers in its shipyard here this year.

Since its first vessel delivery in 2008, Hanjin had posted P125 billion in annual export sales as of end-2011, making it the consistent top exporter in this premier freeport. It has also made the Philippines into a shipbuilding nation in the process.

Jin Kyu Ahn, president of the Korean shipbuilder giant, said Hanjin’s recent vessel deliveries highlighted the competitiveness of its Subic shipyard in producing state-of-the-art commercial vessels.

The two vessels recently delivered were M/T Brightway, a DWT 160,000 crude oil tanker ordered by Liberian company Modmal Shipping Ltd., and M/V FMG Matilda, a DWT 205,000 bulk carrier owned by Bocimar Hong Kong Ltd. based in Belgium. Both ship owners are engaged in international shipping and maritime solutions.

Jin said that as operations of the Subic shipyard expand, “we will require more employees to join the Hanjin workforce, creating employment opportunities for residents in the surrounding area of the freeport zone, including the provinces of Bataan, Zambales, and the city of Olongapo.”

Once targets for ship orders are reached this year, Jin said Hanjin could add over 10,000 workers which “would clearly benefit the Philippine economy, and bring opportunities to Filipino entrepreneurs and skilled workers, and much-needed revenue to the Philippine government.”

Since 2006, Hanjin has been operating two state-of-the-art Skill Development Centers, one at this freeport’s Industrial Park and another in Cagayan de Oro City, to fully equip its Filipino workforce with skills in shipbuilding, which will enable them to attain global competitiveness.
(The Philippine Star)

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PLDT data center to drive Subic BPO development

MANILA - Philippine Long Distance Telephone Co.’s newly launched VITRO Data Center in Subic has been cited as a boost the development of the area’s business process outsourcing (BPO) industry.

“We see BPOs sprouting all over the Philippines but it still remains very underdeveloped here. We aim to increase our BPO seats here as we pursue a major program for this industry,” Subic Bay Metropolitan Authority (SBMA) chairman Bobby Garcia said during the launch of PLDT’s VITRO Data Center at the Subic Bay Freeport Zone.

“We hope we can make use of the facilities that PLDT has installed in the area. The data structure and the network that we have in place now is a reason why we can make Subic a central place for BPO. We are very happy to have PLDT as our partner”, he added.

The Subic VITRO Data Center provides companies the full information management and telecommunication services essential in business such as co-location, server hosting, disaster recovery/ business continuity, data security, network management, and other IT services. These services minimize costs of running and managing their own data centers which are essential for BPO companies.

“Subic’s continuously developing economic zone is home to a growing business community, one that will reap the many benefits of having our data center services within easy reach,” PLDT EVP and head of enterprise and international and carrier business Eric Alberto said.

“We are committed not just to building this facility but to replicate the achievements of our flagship site in Pasig – to ensure that we deliver the same consistent levels of quality service in all our data centers,” he added.

The opening of the Subic VITRO Data Center is also aligned with the SBMA objective of setting up a business operations resiliency zone in Subic. Garcia aims to declare Subic as a resiliency zone for companies in Metro Manila, especially for big multinationals, which are looking into setting up their disaster recovery centers.

“The VITRO Data Center in Subic assures stability, security, and reliability for the ICT demands of our clients, coupled by PLDT’s unparalleled domestic fiber network in the country as well as the robust wireless connectivity of Smart,” Alberto said.

The first VITRO Data Center in Pasig has already received numerous citations and multiple ISO certifications from various organizations. It acts as a global gateway for all major BPOs, local telcos, leading international telcos, and major Internet service providers (ISP). It houses the country’s only high-speed local IP peering platform that facilitates seamless delivery of bandwidth-intensive contents to carriers and ISPs. (Mary Ann Ll. Reyes, Philippine Star)

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Herbalife triathletes finally top team event

HARD work and team pride paid off for Herbalife Formula 1 as it ended Fitness First Body Comba’t four-year reign of the Team Competition in the recently held K-SWISS ITU Subic Bay International Triathlon (SUBIT) presented by Century Tuna.

Composed of triathletes Monica Torres, Hiroshi Takei, Dante Macalintal, John Omar Paredes and Julian Valencia, Herbalife Formula 1 won the grueling 1.5 Km swim – 40 Km bike – 10 Km run event’s team competition at last with a combined time of ten hours, twenty-two minutes and fifty-four seconds. Fitness First Body Combat (members Rizelle Tangan, Melvin Wong, Mark Ellis, Miguel Lopez and Andy Leuterio) clocked 10:31:22 for the silver medal. For the previous few years, Herbalife Formula 1 won bronze medals

At third place in the event sponsored by K-SWISS, Century Tuna, Subic Bay Metropolitan Authority (SBMA), SPEEDO, Harbor Point Ayala Malls, SM City Olongapo, David’s Salon, Travelers Hotel, Asian Centre for Insulation Philippines, Gatorade, Fitness First, Philippine Sports Commission (PSC) and Standard Insurance, was Fitness First Attack which timed 10:34:28.

Prior to the race, a late lineup adjustment was made between the two Fitness First teams with Doray Ellis transferring from team Body Combat to team Attack due to illness. All in all, over twenty-five clubs took part in the event which attracted around eight hundred participants from around the nation and overseas. (People's Journal)

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Subic Hosts Eco-Regatta As Run Up To Recycling Talks

A regatta, showcasing boats made from recyclable materials, will be held here to promote ecological awareness among different schools and organizations competing in the event on Sunday.

Dubbed the Columbia Recyclable Regatta, the eco-regatta is organized as a kick-off event to Columbia’s “Recycling Talks” for schools and organizations.

Organizers said the main requirement for those participating in the recyclable regatta is for all boats to be 80 percent made up of recycled materials.

The participants are encouraged to find an innovative and resourceful way to transform recyclable materials into a fully functional watercraft for the regatta.

The Lighthouse Marina Resort, in cooperation with Philippine Dragon Boat Federation and the UP Mountaineering, is building two boats made entirely of recyclable materials.

One of the main materials used for the watercraft are slippers that Team Lighthouse found on Capones Island in San Antonio, Zambales during a coast cleanup drive last April 27, 2012 in celebration of Earth Day.

The coastal clean-up was also held in line with The Lighthouse’s “Save Capones Island” campaign.

In this race, participants must paddle their recycled watercrafts over a 200-meter course on the seafront of The Lighthouse Marina Resort in Subic. This match is open to teams of two (either under the “Mens” or “Mixed” categories), of all ages and professions, so everyone is encouraged to join. Cash prizes and Columbia gift certificates await the winners.

The first leg of the regatta will be at The Lighthouse Resort, Subic Bay Freeport Zone and the second leg of the race will be in Cebu City. The registration fee is P2,500 inclusive of rash guard. (Jonas Reyes, Manila Bulletin)

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Catiil shines in Subic age group triathlon

Neil Catiil uncorked the form that made him the toss of Philippine triathlon the past years to rule yesterday’s 2012 K-Swiss Subic Bay International Triathlon Age Group Championships presented by Century Tuna at the Subic Bay Freeport.

The 25-year old Catiil displayed a balanced attack to spoil the challenge of national duathlon member August Benedicto in the race organized by the Triathlon Association of the Philippines.

Former top female duathlete Monica Torres relied on her strong performance in the bike and run leg to dominate the distaff side, which attracted 24 lady triathletes.

The Cagayan de Oro triathlete who was dropped from the national team roster at the start of the year due to conflicts with races she is set to compete in, negotiated the 1.5K swim, 40K bike and 10K run race in 2 hours, 16 minutes, 38 seconds.

Catiil was the second competitor to come out of the water at Dungaree Beach after noted swimmer Guy Concepcion. He relaxed a little bit in the bike, before unleashing a big windup.

Benedicto came in second at 2:20:37 but recorded the best bike split at 1:08:50.

At third was national coach George Vilog (2:24:15). He and Catiil also bagged the gold medal in the 25-29 and 35-39 age groups.

Torres anchored her solid performance with the best bike and run splits at 1:17:38 and 44:12 to highlight the fastest time among the female competitors at 2:31:41. She won the gold medal in the 25-29 class.

Former SEAG silver medalist Sandra Araullo-Gonzales took second (2:35:07) and Doray Ellis third (2:41:44). Araullo-Gonzales and Ellis bagged the gold in the 30-34 and 40-44 age divisions.

The event is supported by K-Swiss, Century Tuna, Speedo, David’s Salon, Travelers Hotel, Asian Centre For Insulation Philippines, Gatorade and Standard Insurance.

For topping the male and female categories, Catiil and Torres will be rewarded with an all-expenses trip to compete in the Hong Kong ITU Triathlon Asian Cup slated late this year.

A total of 550 triathletes took part in the second and final day of the race that is also being supported by Harbor Point Ayala Malls, SM City Olongapo, Fitness First and Philippine Sports Commission (PSC).

Other winners in the different age group categories were Eduardo Pertierra (male 18-19); Mervin Santiago and Kim Kilgroe (male/female 20-24); Jeff Valdez (male 30-34); Michelle Villanueva (female 35-39); Mark Ellis (male 40-44); Abel Alon Alon and Celma Hitalia (malef/female 45-49); Rne Stroem (male 50-54); Alvin Alindogan (Male 55-59); and Virgilio Balaba (male 60 and over). (The Philippine Star)

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Chinese, Japanese top Subic triathlon

ASIAN triathlon powerhouse countries China and Japan shared the limelight in last Saturday’s first day of action at the K-Swiss Subic International Triathlon.

China’s Bai Faquan and Japanese Kawashima Eri ruled their respective divisions on a hot and humid day inside the Subic Bay Freeport.

The 26-year-old Faquan, China’s top-ranked triathlete and no. 2 in Asia, shadowed the lead group in the 20K bike leg after finishing behind in the 1.5K swim at the Dungaree Beach. He was seventh man out of the bike transition area, but made his move in the final 10K run leg, taking the lead from Ireland’s Benjamin Shawn in the second loop and stepping up the pace at the halfway mark. His strategy left the field gasping in his wake en route to a solo finish with a time of 1:50.12.

“I was not sure about my chances because of the strong field, but I was aiming for the top three finish to earn ITU points to qualify for the London Olympics,” said Faquan, whose chance for the elusive Olympic slot was bolstered by his winning in Subic. Another win will practically guarantee him a slot to the Olympics, according to the interpreter, who got the information from the triathlete’s Chinese coach.

Finishing second in the race presented by Century Tuna and sponsored by Speedo, Gatorade, Fitness First, David’s Salon, Standard Insurance, Ayala Land, and Asian Centre for Insulation was 20-year-old Shaw, an Under-23 champion, with a time of 1:50.36.

Comebacking Australian Shane Barrie paid the price for a violation committed in the bike transition area as it cost him a 15- second penalty and he settled for third place with 1:52.09.

It was a different story altogether in the women’s elite division, which Kawashima Eri from Japan dominated. Second placer Grace Musgrove, 19, from New South Wales, Australia said Eri was simply too good. Musgrove clocked 2:08.17 to Kawashima’s 2:06.55. (Lito Cinco, Manila Standard Today)

PHOTO:
Top seed China’s Bai Faquan lived up to his billing in the K-Swiss Subic International Triathlon as he came from behind to win the race. Here, Faquan finishes the initial 1.5K swim leg at the Dungaree beach.

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ERC okays Subic firm, SMEC supply deal

THE Energy Regulatory Commission (ERC) said it has provisionally approved the extension of the interim supply agreement between Subic EnerZone Corp. (SEZ) and San Miguel Energy Corp.(SMEC).

In ERC Case 2011-167 RC, the commission said the final generation cost that can be recovered will be determined when it makes the final decision.

ERC made it clear that when the rates provisionally approved are found to be higher than the final rates, the amount corresponding to the excess shall be refunded by SEZ to its customers by crediting the same in their electric bills over a period to be determined by the Commission.

In its letter of agreement furnished to the ERC in November last year, SMEC said it will provide SEZ with 208.06 gigawatt-hours of electricity from December 26, 2011 to December 25, 2012.

SMEC will supply SEZ’s monthly contracted energy at a proposed rate of P3.8916 per kilowatt-hour.

ERC said SMEC assured in its letter that all the terms and conditions in the existing interim supply agreement shall remain in force for the duration of the extended term.

ERC said SEZ previously sourced its power needs from the National Power Corp. under a Contract for Supply of Electric Energy.

Upon the privatization of Napocor’s assets, ERC said the CSEE was assigned to SMEC as it was the assigned as the Independent Power Producer Administrator for the 1,200-megawatt Sual coal-fired power plant. (Paul Anthony A. Isla, Business Mirror)

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SBMA cited for job generation program

Educators in the field of Industrial Technology lauded the Subic Bay Metropolitan Authority (SBMA) for its continuing efforts to generate jobs for Filipinos, especially skilled workers.

This message was conveyed to SBMA Chairman Roberto Garcia during the recent opening here of the 10th National Conference of the Philippine Association of Colleges and Universities of Industrial Technology (PACUIT), which was attended by about 250 senior officers, including presidents and directors from state colleges and universities in the country.

“Your contributions to the socio-economic development of the country must be acknowledged,” said Dr. Feliciano Rosete, president of the Ramon Magsaysay Technological University in Zambales and vice president of PACUIT-Luzon.

Rosete also cited the personal contributions of Garcia, saying that the SBMA official has introduced innovative concepts to strengthen the institutional policies of the agency for the benefit of service-clientele, including workers and students.

Garcia, who was invited as keynote speaker in the event, welcomed PACUIT delegates to Subic and acknowledged the role of his predecessors in turning this former military base into a successful free port and special economic zone.

“The Subic Freeport is a true manifestation of Filipino industriousness,” Garcia said. He noted that after only 20 years since its creation, Subic is now one of the most successful free ports in the Asian region with US$8 billion worth of accumulated investment, and a record of more than 92,000 jobs generated.

Garcia said that Subic’s success could be attributed to the professionalism and dedication of workers to their respective jobs, which prospective investors appreciate.

“That is why my heart is very close to industrial technology,” Garcia said. “Our success is a manifestation of the strong quality-control program being implemented here in the Subic Freeport with the help and cooperation of the workers.”

He added that the SBMA would continue supporting industrial technology by accepting students as trainees in various offices of the agency under its on-the-job training program.

The program is in support of President Aquino’s vision of achieving progress through “Daang Matuwid,” Garcia also told members of PACUIT.

PACUIT is an association of educators in industrial technology, which aims to better equip its members in steering industrial technology programs toward technological advancements and make them more attuned with national efforts in industrial development.

With the theme “Strengthening Response to the Emerging Industrial Technology Challenges,” the Subic conference was designed to solicit and discuss issues and concerns affecting PACUIT members, including the challenge for attendees to make local industrial technology education match with emerging trends in modern technology. (RAV/MPD-SBMA)

PHOTO:
SBMA chairman and administrator Roberto V. Garcia (left) shares a light moment with CHED Commissioner Dr. Nona Ricafort during the 10th PACUIT National Conference at the Subic Bay Freeport. Also in photo is RMTU president Dr. Feliciano Rosete (right).

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Subic’s Ayala mall opens doors to indigenous communities

As part of Ayala Malls' corporate social responsibility program, Harbor Point, Subic’s newest shopping destination, is opening its doors to indigenous groups in communities surrounding the Subic Bay Freeport Zone.

The mall, which formally opened on April 26, envisions itself as a home for the different community groups in the Zambales and Bataan area, said Bobby Dy, Ayala Land’s senior vice president.

“We welcome all these groups, and we will work closely with them. We want this to be their home,” Dy said, adding that the mall’s management is in close talk with the Subic Bay Metropolitan Authority (SBMA) to accommodate community events at Harbor Point.

He said the mall is planning to have community events Mondays to Thursdays. The mall is also providing business opportunities for local indigenous peoples, particularly the Aetas in this free port.

According to Armie Llamas, manager of the SBMA public relations department, Harbor Point has initially allocated a complimentary stall where Aetas from the Pastolan village in this free port can sell slippers that they have crafted. Proceeds from the sale will go directly to the livelihood program of the Aeta tribe, she added.

Llamas, who is in charge of the SBMA's outreach projects for the Aetas in Subic, as well as other community groups, said the tribe is thankful to the mall management for giving them some space in the Harbor Point mall.

She added that the SBMA is also looking forward to other programs that Ayala has lined up, especially for some opportunities for the Aetas to showcase their culture. “They do dance numbers and cultural productions, so Harbor Point can perhaps hire some Aetas for cultural presentations to give them an additional source of income,” Llamas said.

Conrado Prenilla, chieftain of the Pastolan Aeta community, also expressed gratitude for the additional income that Aeta women could earn from selling slippers at the Ayala mall.

“Marami sa mga kababaihan namin ang walang trabaho, kaya po malaking bagay para sa kanila itong ibinigay na livelihood project para po makatulong sa kanila,” he said.

Harbor Point, the latest addition to Ayala Land’s chain of shopping malls, was formally opened on April 26 by Ayala Land’s top executives, including Ayala Land chairman Jaime Augusto Zobel de Ayala. The opening was also graced by SBMA chairman and administrator Roberto Garcia, and Olongapo City mayor James Gordon, Jr.

Antonino Aquino, president of Ayala Land Inc., said that the mall will strive to complement the development that is happening within the Subic Bay Freeport and Olongapo City.

“This is extremely important for us because we know that this is something that is going to be contributing to the further development of Olongapo and Subic,” he said. “We would like to be part of the continued progress that is happening in this twin development.”

Aquino also stated that Ayala Land is looking forward to be a part of Subic and Olongapo’s future towards progress. “We would like to be part of that great journey, and we would like to make sure to start today here in Harbor Point, where every day is a holiday,” he said. (FMD/MPD-SBMA)

PHOTO:
Pastolan Aeta women sell their handcrafted slippers at a complementary stall given by the management of Harbor Point, the newest mall in the Subic Bay Freeport.

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Hanjin, Huntington ink US Navy service deal

HHIC Philippines Inc. (HHIC-Phil), a unit of South Korean shipbuilder Hanjin Heavy Industries and Construction Co. Ltd., is partnering Amsec Llc of the United States to provide maintenance, repair, and logistics services to the US Navy and other customers in the Western Pacific region.

HHIC-Phil signed recently with Amsec, a subsidiary of the largest US naval shipbuilder, Huntington Ingalls Industries, an agreement that will enable Hanjin’s subsidiary to diversify its operations at Subic Bay leveraging on its investment and increasing long-term revenue stability while benefiting from Huntington’s expertise.

“We could not be more pleased with this new strategic relationship with Amsec and Huntington Ingalls,” said Jin Kyu Ahn, president of HHIC-Phil.

“Combining Amsec’s industry leading technical services capabilities with HHIC-Phill’s unparalleled production ability, technologies and quality, delivered from the world’s most efficient marine production system will allow us to offer MRL services at new levels of value to customers,” Jin said.

Harris Leonard, HII vice president and president of Amsec operations, said: “This partnership enables us to leverage Hanjin’s state of the art shipyard at Subic Bay, and I am confident we’ll be able to expand our efforts in providing quality technical services to our most important customer, the US Navy, wherever they may be operating.”

HHIC-Phil, completed in Subic Bay in 2009, operates Subic Shipyard and is equipped with high-tech shipbuilding facilities that include two mega-docks with 550 meters in length and 135 meters wide, four kilometers of front quay facilities, four units of Goliath cranes and an assembly shop with automated facilities 1,000 meters in length.

Hanjin’s Subic Bay shipyard generates 5 percent of Philippine GDP and is one of the largest single employers in the country. Because of the capabilities of the Subic shipyard, the Philippines ranks as the world’s fifth-largest shipbuilding country.

Hanjin Heavy is a world leader in shipbuilding, construction, and other diversified businesses. Since its founding in 1937 as

Korea’s first shipbuilder, HHIC has been a leading force in Korea’s economic development with its many “first-in-Korea” achievements in ship construction and heavy industry.

With offices in eight countries around the world, including Korea, US, Greece, UAE, and Hong Kong, HHIC’s employees continue to be industry leaders in HHIC’s diversified businesses with world class creativity, capability, technical expertise, and dedication to delivering customer value.

Amsec is a subsidiary of Huntington Ingalls Industries. With about 2,000 employees in 27 locations nationwide and overseas, Amsec is a full-service supplier to the US Navy and the commercial maritime industry.

The company provides naval architecture and marine engineering, naval ship systems assessments, maintenance engineering, waterfront maintenance support, acquisition program support, shipyard industrial engineering and C4I installation and support services.

Huntington Ingalls designs, builds and maintains nuclear and non-nuclear ships for the US Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, the firm has built more ships in more ship classes than any other US naval shipbuilder.(Malaya Business Insight)

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Ayala Land keen to increase presence in central Luzon

Ayala Land, Inc. yesterday bared plans to further expand its presence in central Luzon by adding residential or office projects in the area after launching the Harbor Point mall here.

“We are definitely expanding our national presence. We have identified the Pampanga-Bataan-Zambales corridor as a key growth area, and with the opening of Harbor Point, you can say we have already deepened our presence in those areas,” Bernard Vincent O. Dy, Ayala Land executive vice-president, said in a press briefing.

Aside from Harbor Point, Ayala Land’s other developments in central Luzon included Anvaya Cove, a 320-hectare leisure complex in Bataan that the company developed in partnership with Subic Bay Development and Industrial Estate Corp.

“As you can see, we’re always on the lookout for opportunities, and right now, we are in discussions with the [Olongapo] city government and SBMA (Subic Bay Metropolitan Authority) if we can expand further our product offerings. We’re looking at possible residential or office buildings, in addition to Harbor Point,” Mr. Dy said.

Harbor Point, the first Ayala Land mall opened this year, is located on a 3.5-hectare lot along the Subic Bay freeport’s Rizal Highway.

Around 80% of the mall is already leased out to tenants, from which Harbor Point expects to net some P100 million in revenues annually, Javier D. Hernandez, Ayala Land commercial business group assistant-vice president said. (Franz Jonathan G. de la Fuente, BusinessWorld)

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Holy Week proved Subic’s drawing power

As expected, the Holy Week again spiked up tourist arrivals in this free port, as visitors from Manila and nearby areas took advantage of a long weekend to enjoy some days of vacation in this eco-tourism site.

According to the data provided by the Bases Conversion and Development Authority (BCDA), around 50,500 vehicles visited the Subic Bay Freeport on April 1-9, as compared to a record of 30,480 in the same period last year.

Using a standard multiplier of four persons per vehicle, an estimated 202,000 tourists came in to spend the five-day Holy Week here.

Meanwhile, data compiled by the Subic Bay Metropolitan Authority (SBMA) indicated that hotels in the free port posted a 100 per cent occupancy rate on April 5-8, and 75 per cent for the entire week (April 1-9).

SBMA officials said the surge in tourist arrivals here was facilitated by the implementation of a dedicated Subic lane at the North Luzon Expressway and the Subic-Clark-Tarlac Expressway, wherein motorists only had to pay a one-time toll fee for easy access to Subic.

Events scheduled for the Holy Week, as well as the natural environment and modern facilities here, also proved to be the main attractions for thousands of visitors, the officials added.

Various religious services and events throughout the five-day holiday drew thousands of faithful to the4 Spanish-era San Roque Chapel in this free port. These included the “Pabasa” and Stations of the Cross, and the traditional Good Friday procession, which attracted at least 3,000 devotees.

Visitors attended the Good Friday “Walk to the Calvary” re-enactment at the Holy Land Subic Theme Park here, as well as a healing concert by the Bethesda Springs of Hope Ministry in the evening of Good Friday.

Meanwhile, non-religious activities also contributed to the well-rounded Holy Week activities here. These included the Greater Subic Bay Tourism Bureau’s “Hataw Sayaw” competition that was joined by 14 dance groups from Metro Manila, Laguna, Cavite, Pampanga, Zambales and Olongapo City.

Also, BigBoi Productions set up a shoe exhibit at the Subic Gym on April 7. Dubbed as Sneakerology, it featured DJs and music artists from Manila while shoe exhibitors, collectors and traders went around the exhibit. (FMD/MPD-SBMA)

PHOTO:
The Holy Land Theme Park is an emerging tourism attraction in the Subic Bay Freeport.

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Hanjin set to deliver newly-built crude oil tanker and bulk carrier

Relentless in its effort to achieve greater heights in its core business, shipbuilding industry leader Hanjin Heavy Industries & Construction - Philippines, Inc. (HHIC-Phil, Inc.) is set to deliver two newly built vessels before the end of April, 2012 namely: M/T Brightway, a DWT 160,000 Crude Oil Tanker ordered by a Liberian company Modmal Shipping Limited and M/V FMG MATILDA, a DWT 205,000 MT Bulk Carrier owned by Bocimar Hong Kong Ltd. based in Belgium. Both ship-owners are engaged international shipping and maritime solutions.

M/T Brightway and M/V FMG MATILDA were launched last April 27, 2011 and July 29, 2011, respectively and the 34th and 35th vessels to be delivered from Hanjin’s Subic shipyard. Singapore is M/T Brightway’s future port of registry while M/V FMG Matilda is Hong Kong.

Mr. Jin Kyun Ahn, president of the Korean shipbuilder giant, said that the scheduled vessel delivery will highlight the competitiveness of HHIC-Phil’s Subic shipyard which produced the state-of-the-art commercial vessels. “What made this possible is our very efficient, cutting-edge shipbuilding facilities and highly skilled workforce,” he said.

President Ahn explained that Hanjin’s Subic shipyard is compliant with international safety standards as evidenced by its ISO certification and that “the well-being of our shipyard workers is given top priority in all stages of the production process.”

Ahn said that Hanjin has made great strides in promoting the welfare of its workers while training them to become world-class shipbuilding employees, able to build huge ships for various foreign nations in the world.

He also recognized the HHIC-Phil’s shipyard safety committee (largely composed of shipbuilding subcontractors’ representatives) for exerting “utmost efforts in the implementation of the best health and safety practices in order to achieve zero fatal accident in the shipyard in the long term.”

The shipyard has a modern emergency medical facility being manned by competent medical professionals who are ready to provide quality health and medical services to the workers 24 hours a day, which is at par with the international standard.

“This strong resolve on safety concerns has substantially reduced reported cases of work-related accidents, and most noteworthy, fatal accidents have rarely happened.” according to President Ahn.

He also emphasized that the average rate of work-related accidents in the Subic shipyard is much lower as compared to any other heavy industries here and abroad, based on the available statistics from the DOLE and other international organizations.

As part of its commitment to maintain a hazard-free working environment for the shipyard workers, HHIC-Phil in cooperation with the Department of Labor and Employment (DOLE) thru the Bureau of Working Conditions have forged a pact last February 17 of this year.

The Memorandum of Understanding (MOU) is in line with DOLE’s KAPATIRAN-WISE-TAV program of pursuing a culture of compliance with labor standards and of occupational health and safety standards to attain high productivity and quality at the workplace - especially in the face of technological advancement, modernization and globalization.

Since 2006, HHIC-Phil operates two (2¬) state-of-the-art Skill Development Centers - one located at SBFZ’s Industrial Park and the other in Cagayan de Oro City to fully equip Hanjin’s Filipino workforce with skills in shipbuilding, which has enabled its workforce to attain global competitiveness.

These training facilities, which serve as the catalyst for developing skills required in the shipyard, have already mentored more than 25,000 trainees and will continue to hone and develop Hanjin’s workforce to keep them globally competitive.

To date, Hanjin’s Subic shipyard currently employs nearly 20,000 local employees and continues to generate more job and business opportunities in the surrounding communities.

Maximizing its assets and capabilities, HHIC-Phil will be expanding its investment in the Philippines by engaging in offshore business, ship repair, and construction, fabrication and installation of various steel structures for key industries.

The Philippines currently ranks as the world’s 4th largest shipbuilding countries as per record of the Maritime Industry Authority (MARINA), an agency under the Department of Transportation and Communications (DOTC).

Indeed, the presence of the Subic shipyard at the Freeport has also been positively contributing to the growth of the Philippine economy amid the looming world economic crisis. (HHIC-Phil)

PHOTOS: M/T Brightway & M/V FMG Matilda

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Balikatan exercises held in Subic

The Hawaii National Guard, together with the Armed Forces of the Philippines and the Subic Bay Metropolitan Authority (SBMA) fire department, conducted a search and rescue exercise here on April 20 as part of the 28th Balikatan exercises between the military forces of the United States and the Philippines.

The exercise was held at the Collapsed Structure Search and Rescue Training Facility in this free port. The facility is designed to simulate different scenarios during an earthquake.

Participants in the exercise demonstrated different rescue techniques such as high angle rope rescue, collapsed structure rescue, shoring, breaching and breaking.

Capt. Aaron Blanchard, officer in charge of the Hawaii National Guard, stressed the importance of disaster preparation.

“Obviously when disaster happens there’s no time to train then, and the only time to train is when you get opportunities like this,” said Blanchard.

Blanchard also said that the Subic exercise gave them an opportunity to work with different agencies.

“It’s a learning experience for everyone. We learned techniques and procedures and we shared our experiences, too,” he said.

During the simulation, the participants also used the incident command system (ICS), an emergency system designed for planned and unplanned events.

According to Capt. Ranny Magno, SBMA fire department chief, the ICS is a very flexible emergency response system that is being used in other countries.

“One of the features of ICS is that it is flexible and modular. In other words, its use depends on the situation. You can adjust it,” Magno said.

Magno also took note of the preparedness of the SBMA in responding to emergency situations.

“If there is a disaster, the SBMA is ready to respond, to give assistance,” he said. “In many cases, when neighboring municipalities, towns and cities request for our help, we respond immediately. We have the equipment, we have the manpower, plus the kind of discipline of responding immediately because time is the very essence in any emergency, especially in natural calamity.”

The Philippine National Red Cross along with the Olongapo City Disaster Risk Management Council also participated in the activity.

The Balikatan is a combined joint military exercise conducted under the 1951 Mutual Defense Treaty and the Visiting Forces Agreement between the two countries. This year, the joint military exercises focus on Humanitarian Assistance and Disaster Response (HADR) Training. (FMD/MPD-SBMA)

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Subic Bay is now a Wi-Fi zone

PHILIPPINE Long Distance Telephone Co. (PLDT) has added Subic Bay Freeport to its list of Wi-Fi Zones, enabling subscribers to connect to the Internet when they visit popular destinations.

The phone giant, in a statement, said it will provide free Wi-Fi service until May 5 at the free port zone areas such as the Zoobic Safari, Subic Yacht Club Hotel, Pier One, Royal Subic, Times Square Cinema and the Meat Plus/Freeport Exchange.

“We are glad to bring the Wi-Fi zone to Subic Bay visitors so that they will be able to share in real time photos or videos of their vacation this summer to their families and friends here and abroad,” said PLDT Home Wired Data Head Gary Dujali.

Other areas covered by the Wi-Fi zone are Subic’s Remy Field, Eastern Gasoline Station, Petron Gasoline Station, PLDT Subictel, and the area along the Subic Bayfront boardwalk.

“The Wi-Fi zone complements myDSL service at home, allowing customers to stay connected even outside their home,” Dujali said.

After May 5, myDSL subscribers may continue to experience the same strong connection outside the home, in Subic and other Wi-Fi zones in key cities nationwide by just adding P150 to their monthly subscription. Meanwhile, Subictel and other PLDT landline subscribers will just add P300 to their monthly subscription to get the unique Wi-Fi pin which allows access to Wi-Fi zones nationwide.

During the Holy Week break, PLDT also provided free Wi-Fi zone access to travelers in gasoline stations along North Luzon Expressway (NLEx) and South Luzon Expressway (SLEx). The telecommunications company’s Wi-Fi zones also powered establishments and landmarks in nearby towns and cities like Tagaytay and Laguna.

The Internet access is a valuable tool for travelers as they chronicle their trip and post live photos and updates as they happen via Twitter, Facebook, or other social networking sites. It also connects them to news and travel sites that give them the latest traffic information.

Currently, PLDT has over 3,500 Wi-Fi zones in key cities nationwide, including Metro Manila, Cebu, Baguio, and Davao, and more coming soon.(Lenie Lectura, Business Mirror)

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